JB Hunt Transport Services Inc (JBHT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		9.55	9.58	10.72	10.49	9.68	8.47	7.84	7.45	8.04	7.88	8.27	8.15	8.54	8.30	9.68	9.52	9.02	8.55	8.50	8.70
DSO	days	38.22	38.11	34.04	34.81	37.72	43.08	46.54	48.99	45.38	46.31	44.14	44.78	42.75	43.97	37.70	38.33	40.48	42.67	42.95	41.96

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.55
= 38.22

The days of sales outstanding (DSO) ratio measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally seen as a positive sign.

Looking at the DSO trend for J.B. Hunt Transport Services, Inc., we can see a generally improving collection efficiency over the past eight quarters. In Q4 2023, the company's DSO stood at 48.08 days, which was higher compared to the previous quarter; however, it was lower than the DSO in Q4 2022.

The DSO decreased significantly from Q4 2022 to Q3 2023 before experiencing a slight increase in Q4 2023. Overall, J.B. Hunt Transport Services has managed to reduce its DSO from 48.87 days in Q1 2022 to 48.08 days in Q4 2023, indicating an improvement in its accounts receivable collection efficiency over this period.

It is important for the company to continue monitoring and managing its DSO to ensure timely collection of receivables, which can enhance cash flow and overall financial health.